Colorado Springs Real Estate and Community

 

 

Feb. 19, 2018

“Try On” Your New Home Before Buying

"Try On" Your New Home Before Buying

It’s normal to try on outfits, clothes, trousers or shoes before thinking about buying them. Individual automatically know they must try on dresses to be certain they fit perfectly, feel relaxed and also are attractive to them. Can we say the same thing about a home?  It’s possibly the most costly purchase you’ll ever make. Isn’t it even more important to “try on” a home before you purchase it?

What on earth do I mean?  Well, it’s usual to look for a home in places that are convenient to work and schools. Most folks take the daily commute into consideration when shopping for a home. Why not take the daily, weekly, and even monthly activities of family members consciously into account, too?

I once helped a young, single woman named Jen to find and buy her first home, a Wal-Mart employee, she was doing very well in the company and needed a personal home and the tax break homeownership affords.  She requested my advice about selecting, and we had a discussion in which I stated numerous of the kinds of things I’ve said here. We made a list of what mattered to her. Then we went shopping. We looked at a lot of houses. After we came out of each one, we had a talk about how it measured up to Wendy’s list.

One of the houses we looked at belonged to the young woman who later became my daughter-in-law. It was brick; all on one level had a fireplace in the living room, and had patio doors from the master bedroom and dining rooms to an enormous deck with a hot tub. It was beautifully decorated in a sort of “pared down Victorian” style. In was a bed of brass, some wickerwork, various healthy houseplants, as well as a few Victorian pieces of furniture that were really old, family pieces. Silver framed family photos were assembled on top of the piano.

After we leave the house, Jen started down the two steps to the car and then froze in place. She had the weirdest expression on her face. I enquire to know what wasn’t right, and she started to look sheepish and admitted, “That house is so beautiful and decorated nicely, I just liked looking at it and didn’t give any thought to how I’d live in it.  I just wanted it.”

We went back inside.  Jen still admired what had been done with the house, but decided it wasn’t right for her.

Knowing what’s important to you can save costly mistakes.  The process of “trying on” a house helps you evaluate what’s important.  I think you’ll find it’s worth the effort.

http://www.GriffinSellsHomes.com

Posted in Buying a Home
Feb. 18, 2018

"It's So Easy, Being Green"

It's So Easy, Being Green

With the price of oil and natural gas rising, fueling fear of long, cold and costly winters, a new concern in keeping heating rates under control has been ignited. Homeowners have sparked the passion for understanding energy saving techniques. If these sound like you, held in cold waters, here are some guidelines for energy saving tricks of the business.

On the chance that you're staying in a home with a furnace that's over 20 years old, you may have tried to "buy a sweater" method of keeping warm already. This is definitely one approach, but these days a much better option is upgrading your home's conditioning system is and will bode well for you in the here and now, and in the long term, if you decide to sell your home.

Progressively, homebuyers are searching for homes with energy efficient systems installed already. So, consider these improvements as a long-term investment in the resale price of your home, as well as cost-efficient and green option to your current conditioning system.

At present, with that ancient choker of a heating system huffin' and puffin' away make sure it's not as effective as it should be no withstanding fuel type it uses. The recent gas furnaces are mid-efficiency (78-82%) or high efficiency (89-96%).

Even though the higher efficiency products price is up to $1000 over the mid-efficiency products, additional costs will be realized in a couple of years, as they will consume less fuel. In addition, you'll be the greenest frog on the block, distributing less harmful emissions out into the atmosphere. "It's so easy being green", stated Kermit, after he upgraded his furnace.

With oil heating system, there are yet again, greatly more efficient products on the market as of late. But, an oil heating system does need to partner with a good chimney, and so this may be an extra cost to remember

Pay attention, it's still the case that electric heat cost more than oil and gas, though a smart mixture of central woodstove heat, supplemented by electric heat can cost less.

Let it Flow: Change Your Filters!

Not minding if it is disposable or washable, every forced-air heating/cooling systems use filters. And, these filters need to be taken care of and changed. Several filters require regular changes every month while some can last up to three months, and greatly depend on the conditions within your home. A filter that is dirty will limit air flow and with filters that are clogged, you're blocking heat that would have otherwise been keeping you warm. Do yourself a favor and keep on top of the regular changing of your heat filters. This is a pretty easy way to boost your energy efficiency and cut costs.

Pump it up: Install a Heat Pump

Air source heat pumps are the most common and they are generally used with a backup heating system. In terms of function, a heat pump works by extracting heat from the outside and bringing it in, (in heat mode), and by removing heat from the inside of the house and releasing it outside. (in cooling mode).

The king of heat pumps, however, is geothermal or ground and water source, plus while the original investment may be excessive, the saving will be considerable with time. These pumps use 25-50% less energy when compared to conventional conditioning systems.

Finally, another simple method to benefit from these soaring heat bills is to keep an eye on the set temperature levels in your home, What is usually labeled as room temperature is around 68 Fahrenheit (20 degrees Celsius). Obviously, only you can choose where to set the dial.

However, if you would somewhat avoid the "put on a sweater" method of winter energy conservation, you might as well think to capitalize in an upgraded conditioning system that will give you warmth today, and as well be a smart investment in the resale cost of your home in the future.

Posted in Real Estate News
Feb. 17, 2018

Finding A Real-Estate Agent

Finding A Real Estate Agent

Having a real estate agent to assist you out is vital when trying for a fast and decent deal, doesn’t matter if you are selling or buying your home or property.  Selling your property is not just putting up “for sale” sign in your lawn or listing your house in the classified ads.  A real-estate agent would be able to help you sell your home for the right price and get the best deal possible.
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There are many real-estate agents out there, how do you choose the right person?

 DO THE INTERVIEWS YOURSELF

The best way of getting to know an agent is by talking to them personally.  You could directly discuss with them what they think about the property, know about their qualifications, ask about their previous transactions, any kind of problems with previous deals and seeing if the personality would be able to match yours. You could directly inform them what kind of communication you are expecting from them and it they would be able to reciprocate that expectation.

 

QUALIFICATIONS AND HISTORY

Check if they have enough experience and expertise, especially in your location.  They may have an impressive record in other places but they would have limited knowledge in your area.  Also look for any complaints filed against the agent in the State Board of Realtors.

 

REFERRALS

Ask your friend, family or relatives if they would be able to recommend somebody.  If they would be recommending an agent, make sure to ask about their experience with the person.  You could ask about how the agent communicated with the clients and of course, their fees. Before hiring the agent, identify first if they would be able to provide your needs and work with you.  We recommend Colorado Real Estate Agents

 

CUSTOMER SERVICE

Your agent maybe good, but they may be difficult to contact or does not maintain open communication with you.  That would surely create problems.  If your agent has an assistant communicating with you, it is okay as long as they are present in important transactions and would go over the contracts themselves.  How the agent communicates with clients show how they value the property and how serious they are in dealing.

 

FAMILIARITY

The agent that you should be getting should be familiar with the market in the area where you are buying or selling your property.  The agent should have an idea about the competition in the area, the neighborhood’s history of transaction and the usual price range in the location.

 

CONTACTS AND ACCESS TO TOOLS

It is great to have an agent that would be able to find contacts that would match your needs as a client.  Your real-estate agent should have access to Multiple Listing Service (MLS).   This would allow your agent to have access to different properties in different areas to look for houses or properties which would match what you’re looking for.  

 

ATTEND OPEN HOUSES

Attending open houses would allow you to see real-estate agents while working.  You would be able to see how they handle transactions.  You could observe how they promote the house (if the house is for sale) and you could even get a few business cards from other real estate agents.

Posted in Real Estate News
Feb. 16, 2018

Make Or Break: Real-Estate Appraisal

Make Or Break: Real Estate Appraisal

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Thinking to sell your home but unaware of its market value? Getting your property and home appraised would assist you in getting a clue about the value of your property.  But, the appraised value is not to be confused with comparative market analysis (CMAs).  The appraised value is just the value banks honored when you are planning to loan money. 

If you are preparing to get your property appraised, then you should consider the banks’ ideal appraiser.  Usually, the lender or the banks would have contracts with an existing appraiser and you are required to get the services from them.  If the banks or the lender would allow you to get a third-party appraiser, it may take a while before the financing is approved.

Appraisal reports are actually very detailed.  They would contain details of the property, the status of the real-estate market where the property is situated, access to the property like roads, damaged characteristics of the property, the duration the property would be up for sale, also the type of the neighborhood where the property is situated. The appraiser would include in their report whether the road going into the property is private or not.  The bank giving the loan may need a road maintenance contract to be signed.

Appraisers would likewise not to be confused as home or property inspectors.  Inspectors plan to test appliances, check the chimney, examine fixtures and recommend maintenances to increase the home’s worth before putting it up for sale.  Appraisers on the other hand would write down obvious issues in the property and their thought in the area.

How Do Appraisers Determine a Property’s Worth?

When working out the value of the property, appraisers use three approaches.  The worth could be gotten by the comparing sales approach or by likening the property with other properties in the area which are in the same area.  It could also be gotten by ascertaining the much-needed improvements in the property which is known as the coast approach. In the income capitalization approach, the value is determined by the operating income that can be earned from the property.

Getting an Appraiser

But are appraiser fees costly?  Appraiser fees totally are subject to on the time required to finish assessing the property.  It could also be centered on the amount appraiser and the client who needs the service settled upon.  From time to time, appraisers would mention that fees are not ultimate and it is subject to change based on extra expenses. 

The real-estate appraisal is necessary when getting bank loans, the property needs to be separated to multiple heirs, the property should be assessed for tax reasons, or for settlement of an estate. Appraisal reports lessen fight about the property market value during these circumstances. But, the values mentioned by the appraiser are not the entire worth. 

When planning an appraiser, you should verifier his background and checked if they were able to meet requirements. It is mandatory by State for appraisers to be licensed, though there are some who would need appraisers to be certified by the state. They also have harsh standards and codes to follow.

In the absence of any doubt or question, if you are searching or targeting for your property to be funded by a bank or get a trustworthy private or corporate buyer to look at your property, then you would have to have it appraised.  Real-estate is probably one of your biggest investments and you would like to protect and sell it in its proper value.

 

Posted in Selling Your Home
Feb. 15, 2018

Beware: Real-Estate Online Scams

Beware of Real Estate Online Scams

Real-Estate Online Scams

Real-estate is amongst the businesses that are striving and taking up online marketing.  As reported by the National Association of Realtors (NAR), around 84% of home sellers and buyers exploit the internet as a marketing strategy.  Individual who are depending on realty magazines, books and television for selling and searching homes are reducing in numbers.  Agreeing with this kind of information, realtors cannot ignore the fact that online marketing has become a huge force in the industry.

Along with understanding the advantage of online marketing, we should take a look at the risks posed by scammers’ online and other fraudulent activities too. According to research, around $400 billion are lost by U.S. organizations every year due to online fraud and scam.  Home buyers and even home sellers is not exempted from these online fraudulent activities.

An example of such scenario is when home buyers would see prospect homes listed in web-classified ads and official real-estate agency websites too. The prices have a huge discrepancy and those listed in web-classified ads tend to cost less.  Attracting more clients, home buyers would later find out that it is not an official sell at all.  They lose money and at the same time, possible property acquisition.

How to Avoid these Scams

How do we avoid or identify such scams?  Usually, those who are claiming to be the owners of a property up for sale or rent would say that they are out of the country.  If you are renting a home, they would ask for an advanced payment which could be deposited or sent through check.  Never pay or provide money for any property that you have not yet seen. 

Some real-estate scammers would be able to show you a property, however, remain cautious and do some research first on the property before proceeding with any kind of payment.  Usually, a search on Google using the phone number will lead you to suspicious information.

A seller could also experience fraud. An interested “buyer” would send an email and ask about the seller’s property.  They would usually ask details about the home.  As a seller, you should check other web-classified ads. It is common for a seller to find their own property listed there by another individual.

Identity theft is an additional major online problem.  If you are registered in a firm, there is a chance that other people/lenders would be able to pull up your information easily.  There are also some “agencies and firms” that would solicit membership.  Before joining, verify if the firm or agency is legitimate.  They may only be using your personal information for their own transactions.

 To safeguard yourself against real-estate scams, don’t ever give out any kind of personal and financial information to organization or even individuals that would send you emails requesting for it.  Confirm the information provided by the individual you are dealing with.  Scammers would normally send checks to give an impression that they are really making payments. You could ask the bank and have the check verified.

But the best thing that could help you avoid such problems is by getting a real-estate agent or a mentor to help you out.  Mistakes in real-estate happen because beginners or even those who are already in the business for a while would forget to talk to others and ask for advice.

Feb. 14, 2018

Career Change - Becoming A Real-Estate Agent

Becoming A Real Estate Agent

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 Thinking of being a real-estate agent, but don’t know where to start?  First, you would have to determine if this kind of career is the right one for you. 

 Most people usually think that to be a successful real-estate agent, you just need to be good in convincing people to buy properties and houses.  Good communication and persuasion skills are, of course, plus points, but that is not all.  You also need to be familiar with the industry. 

 Real estate agents ensure that the buyers would be able to find their dream homes, while sellers get their property’s worth.  It takes skill and mastery before you could succeed in this line of business, just as it applies to every other type of occupation. 

 Becoming a Rea Estate Agent – All you need to know

 

  • 1.     Training and Learning

 You would need appropriate training and learning.  There are several institutions that offer courses for individuals who would love to take up the real-estate industry. Typically, states would want an ambitious real-estate agent or salesperson to pass about 30 to 90 hours of classroom education.

 The Professional Licensing Commission in your state has lists of trustworthy learning institutions where you can take your courses.  As well, you can ask the Real Estate Association to suggest institutions for you. A high school diploma is a condition and at least be above 18 to 21 years old.

 

  • 1.    License to Operate

 Before you become a proper real-estate agent, states require you have a license to operate.  There is a licensure examination that you need to pass.  Agents are mandatory to renew their license at the end of every two years, however; it still depends on the state. 

 

  • 3.     Attend Seminars

 You likewise need to be attending seminars even after you are licensed.  The real-estate industry is constantly changing or evolving.  A real-estate agent must always be aware of changes in laws and regulations in the state where they operate. 

 

  • 4.     Be an Apprentice to Successful Agents

 But taking up real-estate courses are not the only thing that would prepare you for the industry.  It is recommended that you work with a mentor broker for about 2 to 5 years to get experience. It is like an apprenticeship.  After that period of time, you could start thinking about setting up an individual practice.

 

  • 5.     Be Friendly and Sociable

 Technical requirements like coursework and license will equip you, but it is your attitude that will help you become successful in your field.  As being a real-estate salesperson, it is good to be friendly or a people person.  Reason being that you would be meeting and working with several classes of individuals, not just the sellers and the buyers.  You will also be working with lending officers, lawyers, insurance company representatives, mortgage brokers, even land-use officials as well.

 

  • 6.     Be Flexible with Time

 A real-estate agent is expected to be on call daily.  Clients would regularly call an agent during the time when they are available, to ask for advice or updates. Being flexible is another quality a real estate agent needs to improve.  Clientele sometimes could be a problem for agents starting.  You ought to have patience since it would take some time before you grow your personal client list. 

 

  • 7.     Bonus: Other Source of Income

 Another point of concern for real estate agents is the income.  Most experts would suggest that those who are just starting to study the industry should have another source of income.

 However, if you are selling houses that are worth millions every day, then they will not be any problem with income of any kind.  But success would surely come if you would work hard and learn from every step you take in the industry. 

 

Posted in Real Estate News
Feb. 13, 2018

Investing In Real-Estate

Investing In Real Estate

 

Probably you have heard it in the past, one among the best investments you could make is investing in real-estate.  Normally, a real estate property appreciates in value. It may sound simple, but for those just starting, they would generally discover that it is not that simple.

 

It would require understanding which can be gotten through research, planning and hard work. There are mistakes that are common in real-estate investing which might lead to severe consequences.

 

Before you think about investing your money in real-estate, you should have to put several things to consider. For example, you would have to identify what kind of money you want to earn, it could be lump sum where you could have to venture into wholesaling and flipping.   Flipping means you would have to buy properties and hold them until you could sell the properties for profits. 

 

Before buying any type of investment, you should be acquainted with the laws that cover the assets.  States usually have different laws with respect to property acquisition. There are legal processes that you would have to complete or undergo in to fully claim your right to the property.

 

What Can your Asset Provide You?

 

Your asset could provide passive income as well which would make you take a look at houses or properties that could contain a number of families.  These houses could be rented out.  But this type of investment may have hitches due to the fact that the property may end up with the tenant that is not good or without any tenant at all.

 

If rightly managing the homes or rental units is not your concern, then you could attempt to get real estate investment group.  They would be developing or managing the property for you in exchange for a percentage of tenants’ monthly payments.

 

What to Know When Investing in Real Estate

 

On the chance that it is your first time to enter in real-estate investing, then you should be aware of beginner’s mistakes that are common.  One of the common errors is speculation.  Novices would normally follow the mass media, buy a property and pause for its worth to increase.  This could be dangerous. 

 

As stated earlier, real-estate investing needs research. Apart from that, you would have to be prepared for the worst as well. If nobody buys the property, then you would have to think of other methods on how you could generate income from it.  You could lease it, rent it and think about other exit strategies.

 

Another common mistake is getting emotions involved in their first investment.  Emotions also cause problems when making a decision in the business like prospect buyers being cut-off even if they are offering the finest deal.  Before you start searching for properties, be certain that the real estate team is ready. 

 

Many individuals believe that they could begin investing alone, huge mistake.  A noble real-estate team and mentor would certainly assist you to advance quickly towards reaching your goal.  Whom do you need to join your team? You would need a real-estate agent, tax adviser, loan officer, and a lawyer.

 

When searching for property, have two things in mind: location and value.  There are newly-developing areas where real-estate could offer you in the future greater financial returns.

 

Usually, you would find a great property in a great location, it may need some fixes but it could be addressed inexpensively. You ought to think twice as well concerning buying a good property or residential house when it is situated in areas with high foreclosures rates.  In addition, think about buying a property that is in the same vicinity to your home.  This way you could focus your attention and check on the property without being stressed of traveling many hours.

 

Investing in Real-estate would not turn you into a rich man overnight. It means you would hard work and carry out good marketing strategies.  It is important for you to be mental, emotionally and psychologically ready for it.  However, when played in the right strings, it would definitely give you financial stability.

 

 

Posted in Investor News
Feb. 12, 2018

Colorado Real Estate

Colorado Real Estate: Does it Rock

 

Colorado Real Estate: Does it Rock?

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We are aware that Colorado is famous for Rocky Mountains. The question is does the Colorado real estate also rock?

Although Colorado real estate doesn’t rock that much, according to statistics and when we match Colorado real estate to others for instance real estate or Florida real estate. However, there are people with contrarian views as well.

And believe me, contrarian views do sometimes get huge profits for you, because in such circumstances you will generally face lesser competition from other real estate investors and you can possibly get a Colorado real estate piece for very far below what it actually cost.

But, we are not stating that Colorado real estate has underperformed. Though I can’t recall the precise figures but Colorado real estate increase in Asset was about 5-7% only which is much lower to 25% or so for Florida real estate.

Again, when we say 5-7% appreciation in Colorado real estate, we are speaking concerning the overall state. Thus, it’s somewhat likely that there could be regions in the state where the real estate rise is about 25% and there could be other places where there has been no rise in real estate.

The chance is always there, the one thing you need is the talent of discovering the Golden deal in this Colorado real estate market. 

Do you need to be Expert before Evaluating Colorado Real Estate?

When evaluating Colorado real estate it is essential to put into consideration several factors e.g. you must evaluate the general economic signs and check what influence it can have on Colorado real estate (both in the short and longer term).

You don’t have to be a financial analyst or a real estate expert before carrying this assessment; you just have to keep track of several news articles and analysis news or reports on Colorado real estate.

Also keep track of the mortgage rates and laws on tax breaks (as applicable to Colorado real estate). All these aspects affect the trend of real estate everywhere (not just in Colorado).

Besides, you will have to search for Colorado real estate prospects by attending public auctions, foreclosures, liaising with attorneys for data etc.

Once more, have it in mind that news not-so-good concerning any real estate (be it any real estate like Colorado real estate or Florida real estate), doesn’t indicate that investment in real estate won’t be profitable at that place; actually, it might bring the number of competitors that you have down.

So, on the chance that you feel Colorado real estate doesn’t rock; you can probably make it rock for you. There are always abundant opportunities.

 

Posted in Investor News
Feb. 11, 2018

Home Selling Checklist

Home Selling Checklist

It’s not an easy job to sell a house. It’s a detailed process. You don’t just post your house online, meet a buyer, negotiate and then sell it. There is more of a process to sell your house. 

 

 

Below is a good example of an effective checklist to follow. This home selling checklist provides some steps you should follow when it comes time to sell your house. First, decide whether you pay an agent to sell your house or you just do it yourself.

Paying a Real Estate Agent is a good idea because it requires little effort from you, to sell your house. An agent will carry out most if not all the business steps necessary for you to sell your home. You just hire an agent and pay them to follow through with the steps. It will not cost a considerable amount either to hire an agent. 

For example, we offer a low rate of 1 and ½ % plus cooperating broker fees. So, it’s up to you if you want to pay more to put in less effort, or pay less and do it yourself with more effort.

Here is an example of a checklist that would be a good idea to follow when selling that would apply to you selling it yourself or with an agent:

      • ·         Be a communicative and informed seller that goes in with a strategy. You can use different kinds of media to promote your home, such as newspaper, pamphlet, You Tube, or websites.
      • Make sure you come up with a reasonable and accurate price to sell your home for.     
      • ·        Get your house ready to sell by doing some preparations for your house on the exterior, interior, and        with your appliances.
      • ·         Decide whether you want to pay a professional to do a pre-listing house inspection or not.
      • ·         Do some selling of your unnecessary furniture and appliances.
      • ·         Get familiar with financing terms, such as mortgage financing (fixed, adjustable, seller financing, assumable loans), pre-qualified, pre-approved, and commitment.
      • ·         Get familiar with negotiation that will occur with different items such as the contract, offer, deal, etc.  
      • ·         You should learn how to present an offer and get familiar with the legal transaction process.
      • ·         Know what you can improve or not in your house, on the interior, exterior and what you cannot      improve such as location, style, etc.
      • ·         Decide whether you will get a home warranty on your house or not.
      • ·         Research tips in buying a new home, while you are in the process of selling your old one.
      • ·         Decide on preferred dates for closing with the new buyer.
      • ·         Record your move-out details and the process you are going to take to get moved out.

This checklist is designed to give you some of the more common and more important things to think about and exercise in the process of selling your house.

 

Posted in Selling Your Home
Feb. 10, 2018

Adjustable-Rate Mortgage Payment

Adjustable Rate Mortgage Payment

Individuals are inquiring if home loans adverts in newspaper showing surprisingly low rates are real. Those ads are what is called call adjustable-rate mortgage payments.

 

 Loans with an adjustable-rate mortgage payment type typically have low rates just for a short period. Rates of adjustable-rate mortgage payment are adjusted on a steady basis, regularly after the first year is over. This implies that the interest rate and the sum of the monthly adjustable-rate mortgage payment may differ, going whichever way up or down.

 

With adjustable-rate mortgage payments, there is slight chance of you having knowledge of what your forthcoming monthly payment would be. Some kinds of adjustable-rate mortgage payments have bounds to the interest-rate increase. When an adjustable-rate mortgage gets to a certain percentage, the interest rate will no longer rise for the length of that period. However at the end of that period, the adjustable-rate mortgage payment will differ once more.

 

To determine whether or not an adjustable-rate mortgage payment is the correct type of loan for you typically depends on your financial status. Likewise, it depends on the kind of adjustable-rate mortgage payment you intend to make. Adjustable-rate mortgage payments have characteristics that might ultimately prove risky in the long run. Because the dynamics of interest rates in the market are never certain, the amounts of your adjustable-rate mortgage payments are uncertain as well.

 

Adjustable-rate mortgage payments normally have lesser initial return rates when compared to fixed-rate mortgages. This makes an adjustable-rate mortgage payment more reasonably priced and stress-free on the pocket. Adjustable-rate mortgage payments may likewise assist you qualify for a bigger loan. This is because the lenders occasionally choose to prolong a loan on condition that your present income is stable and your adjustable-rate mortgage payments for the initial year are up-to-date.

 

 Another benefit of having an adjustable-rate mortgage payment kind of loan is that it could turn out to be cheap in the long run. With an adjustable-rate mortgage payment, the possibility of interest rates moving higher is equivalent to its possibility of moving lower. Now here likewise lies the risk of having an adjustable mortgage payment.

 

 With regards to having an adjustable mortgage payment, there are no assurances. It is either the interest rates will come down or it will increase. Lower interest rate is equivalent to lower monthly adjustable-rate mortgage payments. On the other hand, higher interest rate is equivalent to higher monthly adjustable-rate mortgage payments for you. There is no central ground. Adjustable-rate mortgage payments are mainly a trade-off – you exchange more risk for lower rate with an adjustable-rate mortgage payment.

 

How to Avoid the Risk of Adjustable-Rate Mortgage Payment

 

Not with standing, there are some means to avoid the risks and increase your possibilities of landing a decent investment in an adjustable-rate mortgage payment. Below are few questions you need to deliberate:

*Is there a probability that my income will increase enough to cover increasing adjustable-rate mortgage payments on the chance that interest rates rise?

*Is there a possibility that I might take on other substantial debts like a loan for a car or school tuition in the near future? 

*Will my adjustable-rate mortgage payments rise even if interest rates remain the same?

*How long do I plan to own this home? (If you plan on selling soon, an increase in interest rates should not be a problem for your adjustable-rate mortgage payment.)